Austria’s VAT policy is based on the "destination principle" of the European Union VAT system. This means that VAT is payable to the country's government where the product or services are consumed, regardless of where you're supplying them from. So, if you have clients in Austria, you have to comply with Austrian VAT rules.
The standard VAT rate in Austria is 20%, with reduced rates of 13%, 10%, and 0% applying to a few products. This guide includes everything you, as a freelancer, need to know about VAT in Austria in a nutshell. Let's get started!
If you’re wondering whether you are eligible or required to register for VAT in Austria; we might have the answer you’re looking for:
According to the Austrian VAT law, the following are exempt from VAT:
There is no specific threshold for VAT registration for expats in Austria; instead, the country follows a reverse-charge mechanism to tax foreign individuals and companies.
If your annual sales turnover exceeds the VAT threshold limit, you must apply for a VAT identification number, either online or offline. Additionally, you are required to have an EU VAT Number if you plan on carrying out any form of intra-EU transaction.
You can also register using the Mini One-Stop Shop, an EU-wide tax system that allows you to consolidate all of your EU VAT in one single tax return. This is where the EU VAT number comes in. The scheme is optional but convenient and especially useful if you have customers in multiple countries within the EU, including Austria. MOSS allows you to avoid registering in each Member State of consumption.
To receive your VAT identification number offline, you are required to visit the Graz-Stadt tax office in person with the following completed forms:
Your application has to have clear reasons and all the details related to the taxable transactions, your orders, and your customers and suppliers.
Related read: Steps to become and work as a freelancer in Austria
Now that you know how to register for VAT, you might be interested in understanding how much VAT you’re liable to pay! The Austrian tax administration levies four different VAT rates, and freelancers must charge the amount that applies to their products and services:
Registering for VAT is only part of the process. In order to fully comply with VAT registration laws, you must also make sure to file VAT returns.
Invoicing and making sure all VAT rates you apply are correct are among freelancing aspects you can automate to make your life easier and save your energy and money into your core specialization and finding prospective clients. Simplify your boring and mundane VAT tasks with Xolo Go, send VAT-compliant invoices in a single click and get paid in your business bank account without having to start a company.
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